"...Back in the early 1960s a dollar of new debt added almost a dollar to the nation’s output of goods and services. As more debt enters the system the productivity gained by new debt diminishes. This produced a path that was following a diminishing line targeting ZERO in the year 2015. This meant that we could expect that each new dollar of debt added in the year 2015 would add NOTHING to our productivity..."
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Comment: This trend is well known. It was mainly the late Richebächer who used this statistics for his predictions that debt expansion will not bring about swift recoveries. For the current situation the chart above (click to enlarge) says that the stimulus money will be a gigantic waste with negative effects on the economy.
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